Emerging Market Fund
Emerging Market Experienced Investor funds (EMRE's) can be formed in Gibraltar to be SIPP and SSAS compliant for UK and other EU investors. Such Emerging Market Real Estate funds can purchase commercial (and some private) real estate in a mix of countries such as Poland, Romania, Morocco, Germany and other countries.
Many well known and established, single market EMRE's return on average 17 to 23 percent per annum, over a five year period. We project that a diversified EMRE concentrating in the above-mentioned counties purchasing land alone, could realise returns on capital to investors, of around 35% + over a 5 year period.
This because real estate is increasing at 20% + per annum in many of these markets, and in addition, local currencies are appreciating too. Add on profits for developing projects and potential returns increase even further. Country diversification reduces downside risk and smaller EMRE funds can be very successful by incentivising the managers with a share of net profit.
Economic and political factors are driving forward growth, especially in countries such as Poland and Romania, where benefits of EU Membership and low wages are attracting record levels of foreign capital. An EMRE fund can be structured to invest for the long-term by primarily purchasing land and enhancing land values through change of land classification. Funds can choose not to enter into joint-ventures with developers. EMRE's are cost effective and quick to establish. They are becoming the favourite special purpose vehicle for High Net Worth Individuals and smaller companies who utilise the tax advantages to roll gains into personal pension plans. An EMRE is often used as a private closed ended fund to to develop and realise a specific project in joint venture with others.
For further information about how you may participate in Experineced Investor Funds, please Contact Us.